Planning for Retirement? Don’t Overlook Travel Insurance

Retirement marks the beginning of a new chapter—one that offers more freedom, flexibility, and time to pursue what matters most. Whether you’re just entering this phase of life or have already settled into a retirement routine, the decisions you make now can impact your health, finances, and lifestyle for years to come.

To help Canadians prepare for a smoother transition into retirement, we’ve created a series of articles that highlight key areas to consider, including prescription drug coverage, extended health and dental options, and—critically—travel insurance.

For many retirees, travel becomes a major focus. You may plan to explore Canada’s vast natural beauty, spend winters in a warmer climate, or finally check off those international destinations on your bucket list. The ability to travel more frequently and for longer periods is one of the great rewards of retirement—but it also comes with some added responsibility, especially when it comes to your health coverage while away from home.

Travel Insurance in Retirement: Why It Matters

Whether you're spending a few months in the sun as a snowbird, road-tripping across the country, or flying overseas, emergency travel medical insurance is an essential part of your travel toolkit.

Travel insurance gives you peace of mind by helping protect you against the high and unpredictable costs of medical emergencies, trip cancellations, interruptions, and lost or delayed baggage. It ensures that a health emergency abroad—or even in another province—doesn’t turn into a financial crisis.

Do I Really Need Travel Insurance?

In short: yes—especially if you’re a retiree planning to travel outside your home province or outside of Canada.

While every Canadian is covered under their province or territory’s Government Health Insurance Plan (GHIP), that coverage becomes extremely limited the moment you leave your home province or country. If you require emergency care elsewhere, GHIP may only reimburse a fraction of your actual costs—or nothing at all—leaving you on the hook for potentially thousands of dollars.

For example, a medical emergency like a heart attack while visiting the U.S. could result in hospital bills exceeding $100,000 CAD, most of which would not be covered by your GHIP.

What Kind of Travel Insurance Should I Consider?

There are many types of travel insurance policies available to suit your specific needs. Consider factors such as:

• Length of travel: Some plans cover short trips (e.g. up to 30 or 60 days), while others are tailored for extended stays abroad.
• Frequency of travel: If you travel multiple times a year, an annual multi-trip plan might offer better value than buying insurance for each trip individually.
• Personal health insurance: If you already have a private health plan—either individually or through an employer—it may include some travel coverage. Be sure to confirm the details, including any limits or exclusions.
• Credit card coverage: Some premium credit cards include travel-related benefits like trip interruption, rental car insurance, or limited emergency medical coverage. These plans can be helpful, but often only apply to the cardholder and may be restricted by age, trip duration, or pre-existing conditions. Always read the fine print.

If your existing coverage isn’t sufficient, you can top up your plan or purchase standalone travel insurance tailored to your trip. Additional options like trip cancellation, trip interruption, and baggage loss protection can also be added depending on your travel habits and budget.

Don’t I already have health care coverage through the government?

Yes, all Canadians have access to health care through their provincial or territorial Government Health Insurance Plan (GHIP), but it’s important to understand that this coverage is significantly limited when you're travelling—especially outside of your home province or outside Canada.

When travelling within Canada, hospital and physician services are generally covered by your GHIP through interprovincial agreements. However, you may still be responsible for certain out-of-pocket costs. For example, if another province charges more for a medical service than your home province reimburses, you may need to pay the difference. In some cases, you might also have to pay upfront and submit receipts for reimbursement. Quebec, in particular, does not currently participate in the reciprocal billing agreement for physician services, so you may be billed directly and must apply for reimbursement through your home province.

When travelling outside of Canada, GHIP coverage is extremely limited. You’ll often need to pay the full cost of any medical services upfront, then submit a claim to your provincial or territorial health authority for partial reimbursement. These reimbursements are typically modest and capped at rates far below what international hospitals may charge. For instance, some GHIPs may reimburse only $50–$100 CAD per day for hospital care—far less than the actual cost in most countries. Expenses like diagnostic tests, surgeries, or overnight hospital stays can quickly add up and exceed the reimbursed amount by thousands of dollars.

Furthermore, GHIPs do not cover critical emergency services like air or ground ambulance transportation, hospital transfers, or the repatriation of remains. These costs can be financially devastating without proper insurance.

Because of these limitations, all provincial and territorial governments strongly recommend purchasing emergency travel medical insurance any time you travel outside your home province or territory. Travel insurance can protect you from the high and unpredictable costs of emergency care abroad or in another part of Canada.

How long can I be away from my province and still keep my GHIP coverage?

Each province and territory has its own rules for how long you can be absent and still remain eligible for health coverage, but here are some general guidelines:

• You can usually be outside your home province or territory for up to 12 consecutive months if you’re temporarily living elsewhere in Canada.
• If you’re travelling outside of Canada, you may be allowed to retain coverage for up to 6 or 7 consecutive months, depending on your home province.
• Some provinces allow you to be out of the country for up to 212 days in a 12-month period for vacation purposes—this is especially relevant for snowbirds.

To maintain your eligibility, you typically need to:

• Maintain a permanent residence in your home province or territory.
• Be physically present in your home province for a minimum number of days each year (usually 183 days).
• Notify your provincial or territorial health authority if you plan to be away for an extended period.

Special exceptions can apply for students, temporary workers, or those on sabbaticals. It’s important to confirm the specific rules with your provincial or territorial health authority before planning long-term travel.

Why you still need travel insurance - especially in retirement

As you approach retirement, your travel habits may change—longer trips, more frequent getaways, or winters abroad. These changes increase your exposure to gaps in public health coverage. Some personal or extended health care plans include emergency travel coverage, but these are often limited in duration (e.g. 30 or 60 days per trip). If you plan to travel for longer, look for plans that offer extended or top-up travel insurance.

Ultimately, having travel insurance alongside your GHIP ensures you're financially protected in the event of a medical emergency. It helps retirees—and all travellers—stay safe, prepared, and stress-free while enjoying time away from home.

What Does Travel Insurance Cover?

There are several types of travel insurance, and understanding what each covers can help you choose the right plan for your needs—especially during retirement, when health risks may increase and trips may be longer or more frequent.

1. Emergency Medical Insurance

Emergency medical insurance is the core component of most travel insurance policies. It covers unforeseen medical expenses while you’re away from home, including:

• Hospital services
• Emergency physician care
• Prescription medications
• Diagnostic tests and imaging
• Emergency dental care
• Medical appliances (e.g. crutches, slings)
• Air or ground ambulance transportation
• Medical evacuation or air ambulance, when necessary
• Return of insured dependents, pets, vehicles, or personal items
• Meals, accommodations, and return flights due to medical delays

Because medical emergencies can happen at any age—but are statistically more common later in life—emergency medical insurance is particularly important for retirees. Policies vary, so review your coverage limits, exclusions, and conditions carefully before you travel.

2. Trip Cancellation, Interruption, and Baggage Insurance

Medical insurance doesn’t cover everything that can go wrong on a trip. That's why many insurance providers offer additional travel protection options, either as a package or standalone policies:

• Trip Cancellation Insurance reimburses you for prepaid travel costs if you need to cancel before departure due to reasons such as illness, family emergencies, natural disasters, or travel advisories.
• Trip Interruption Insurance provides reimbursement if you need to cut your trip short or change your itinerary due to covered events that happen after you’ve already left home.
• Baggage and Personal Effects Insurance covers the loss, delay, theft, or damage of your luggage and belongings during your trip. While airlines have obligations under Canada's Air Passenger Protection Regulations, this coverage extends protection beyond your time in transit.

Some travel insurance packages also offer 24/7 emergency travel assistance, concierge support, and mobile claim submission to make travelling as smooth as possible.

Single-Trip vs. Multi-Trip Travel Insurance

If you’re planning more than one trip per year, you may want to consider a multi-trip annual plan. Here’s how they compare:

You can often top up a multi-trip plan if you're staying longer than the standard duration allowed for each trip.

When Should You Buy Travel Insurance?

The best time to buy travel insurance is as soon as you book your trip. That way, you’re protected in case something unexpected prevents you from travelling before departure. For example, if a hurricane is announced after you book a beach vacation, trip cancellation insurance is only valid if purchased before the storm became a known event.

Some important reminders:

• You can’t purchase travel insurance after you’ve left your province or territory.
• Be honest about your medical history when applying.
• Make sure your policy covers the entire length of your trip, including the day you leave and the day you return.
• If your trip dates change, update your insurer before the original policy expires.

What Is a Medical Stability Clause?

Most travel insurance policies include a medical stability clause, which requires that your health condition(s) remain unchanged for a specified period before your departure. This means:

• No changes to your prescriptions or dosages
• No new diagnoses or symptoms
• No tests, procedures, or hospitalizations
• No stops or starts of any medications

Stability periods typically range from 30 to 180 days, depending on the insurer and your medical condition. For example, if your blood pressure medication dosage changes within 90 days of travel, you may not be covered for any related claims while abroad.

Can I Get Travel Insurance If I Have a Pre-Existing Condition?

Yes, but with conditions.

A pre-existing condition is any health condition you were aware of before your trip. Many insurers will cover pre-existing conditions as long as they’ve remained medically stable for a certain period before your departure.

Some insurers offer:

• Full coverage for stable conditions within the required period.
• Partial coverage that excludes any claims related to the condition.
• No restrictions, depending on your age and health status, although premiums may be higher.

Always disclose your health history honestly. Failing to do so may void your policy if you need to make a claim.

Will I Be Denied Travel Insurance Because of My Age?

Not necessarily.

While some insurers have age limits or require detailed medical questionnaires, many providers offer plans specifically designed for older travellers—including retirees. Premiums may increase with age, particularly if you have pre-existing conditions, but coverage is often still available.

If your employer health plan ends at age 65, you may want to explore extended personal health insurance options that include travel benefits lasting up to age 80 or more.

Travel Tips: Preparing for a Safe Trip

Before you pack your bags, consider these steps to help ensure a safe and smooth journey:

1. Check Travel Advisories: Visit the Government of Canada’s travel site for up-to-date advisories. Many insurers won’t cover medical emergencies in regions with active Level 3 or Level 4 advisories.
2. Confirm Passport Validity: Some destinations require your passport to be valid for at least six months beyond your return date.
3. Check Visa Requirements: Use the Government of Canada website to find visa requirements for your destination.
4. Register with Canadians Abroad: This free service lets the government reach you in emergencies abroad.
5. Buy Travel Insurance: Ensure your coverage is active for your entire trip. Keep a copy of your policy and emergency contact numbers with you.
6. Update Vaccinations: Make sure your routine and travel-specific vaccines are current. Some countries require proof of vaccination.
7. Prepare Medications: Bring enough for the entire trip, with extras. Carry prescriptions and a medication list if possible. Learn more here.
8. Travelling with Pets? Consider pet insurance if you’ll be away for a long time.
9. Renting a Vehicle? Check your personal or credit card insurance coverage. Rental car insurance is often separate.
10. Know Your Passenger Rights: Learn what protections are in place for flight delays, cancellations, and lost baggage.

Ready to Travel Confidently Into Retirement?

Retirement is your time to enjoy life without unnecessary stress. Whether you're jetting off on a once-in-a-lifetime trip or planning annual escapes to the sun, having the right travel insurance is an essential part of protecting your well-being and your wallet.

At Aeva.ca, we make it simple to compare and apply for extended health insurance plans that include the emergency travel medical coverage you need in retirement. Explore your options today, and travel into your golden years with peace of mind.